Elektrizitätsmärkte: zwischen Regulierung und Wettbewerb. Welcome and Introduction

Transcription

1 Elektrizitätsmärkte: zwischen Regulierung und Wettbewerb Welcome and Introduction

2 Agenda Research Center Teaching Lecture 2

3 Who is Who? Energy Economics has been initiated in HS 2011 at the WWZ and me and my team are integrated into the interdisciplinary Research Center on Sustainable Energy and Water Management (Forschungsstelle für Nachhaltige Energie- und Wasserversorgung, FoNEW) are since 2014 also integrated into the SCCER-CREST (Competence Center for Research in Energy, Society and Transition) are topic wise connected to Environmental Economics (Krysiak), Public Economics (Hintermann), Political Economics (Kachi), and Industrial Organization (Roux) currently addresses mainly applied topics in electricity markets (renewable integration, market liberalization, energy efficiency) still slowly tries to expand into water topics and is looking forward to a new generation of energy interested students! 3

4 Energy Economics Team 2 Post-Docs: Dr. Ingmar Schlecht Dr. Rebecca Lordan-Perret and 5 PhDs: Léo Chavaz (gas markets and supply security) Ali Darudi (electricity markets and investments) Carla Mendes (electricity market design and renewables) Jonas Savelsberg (electricity markets and climate change) Moritz Schillinger (hydropower and sustainability) 4

5 FoNEW The FoNEW is: an interdisciplinary research center combining natural science, economics, and social science was supported by the canton Basel-City, local energy companies and other sponsors for its first five years topicwise interconnected to the Master in Sustainable Development All relevant information can be obtained via: 5

6 SCCER CREST SCCER CREST brings together research groups from almost all major Swiss research institutions. It cooperates closely with partners from industry, public administration, and policy consulting. CREST consists of four lines of research: Work Package 1: Energy, Innovation, Management regional and firm level, heterogeneous actors, technology, business models 1) how actors address systemic challenges 2) interplay between technology characteristics, firm strategies, and institutional settings; 3) guidelines, platforms and tools that help the actors Work Package 2: Change of Behavior household level 1) determinants of demand and change of behavior 2) impacts of preferences on changing behavior 3) understanding of consumption patterns and development over time 4) strengths and weaknesses of different political, private, civil, and hybrid instruments Work Package 3: Energy Policy, Markets and Regulation evaluation and design of national policy and energy markets 1) Assessment of existing policies and market structures 2) Recommendations for new policies and market designs 3) Swiss Energy Pathways Work Package 4: Energy Governance identify legal and political challenges highlights the role of different actors political and democratic processes, market behavior and societal practices normative, qualitative and quantitative empirical methods 6

7 Agenda Research Center Teaching Lecture 7

8 Bachelor Introduction to Energy Economics I & II Basic lecture covering the most important topics in energy ItoE I (HS, 3CP): Basics and Definitions, global energy picture, future outlook, fossil fuel markets (oil, natural gas, coal) ItoE II (FS, 3CP): electricity markets, environmental aspects (climate change, emission trading) and renewable energies, energy demand and efficiency, regulation Modules: Aufbaubereich wirtschaftswissenschaftliche Fragen von Nachhaltigkeit (MSD) Wahlbereich Bachelor Wirtschaftswissenschaften Both lectures can be attended separately and have separate exams 8

9 Master Elektrizitätsmärkte: zwischen Regulierung und Wettbewerb (HS, 6CP): Basics of power system economics and case studies on current topics MOOC - Modeling in Environmental and Energy Economics (HS, 3CP) Colloquium; the course consists of an online part and supervised group work. Ökonomie von Wassermärkten (FS, 3CP): Basic overview on global water usage, discussion on specific water realted economic topics (i.e. regulation, game theory, trading) 9

10 MA Thesis An overview on topic ideas and ongoing as well as finished theses can be found on the FoNEW Homepage: Interested Master students should have: Knowledge of the relevant field lectures Solid microeconomic knowledge (adv. Micro, IO, etc.) A clear idea about their own interests, strength, and weaknesses (!) Basic knowledge of ItoE I&II is always helpful Theses can be written in German or English 10

11 Other Lectures to Consider Topic wise there is a high overlap with: All lectures focusing on microeconomics and industrial organization (Pflichtkernmodul BWL, Fortgeschrittene Industrieökonomie, Industrial Organization, Contest Theory, Contract Theory) All lectures addressing issues of public economics and regulation (Ökonomische Theorie der Politik, Advanced Public Economics, Competition Policy, Internationale Politische Ökonomie) All lectures addressing environmental economic topics (Advanced Environmental Economics, Sustainability, Intergenerational Justice, and the Economics of Climate Change, Ressourcenökonomie, Energy and Climate Policy, International Trade Resources and the Environment) Other relevant topics in electricity markets are: Investments (as in all other markets, especially uncertainty issues) Applied methods ranging from basic theoretic evaluations, to econometrics, to numerical modeling and computational methods The demand side and thereby consumer behavior gains increasing importance 11

12 Agenda Research Center Teaching Lecture 12

13 Semester Overview Date Topic Welcome and Introduction Technical Overview Market Basics: Liberalization and Competition Market Design and Interaction Networks and Power Flows No Lecture Wrap Up Part Buffer Mid-Term Exam Market Design, Interaction and Incentives Investments and the Capacity Debate Dies Academicus Investments and the Capacity Debate cont tbd Wrap Up Part Buffer Part I, Lecture: Basics Elements and Design of Electricity Markets Part II, Paper Discussion: How Applied Economics works using current electricity topics as example 13

14 Administration All relevant information will be provided via the lecture website: elektrizitaetsmaerkte/abteilung/energy/ Required and additional readings are provided as download (password protected) The first part is based on three lecture books: Stoft (2002) Kirschen&Strbac (2004) Pérez-Arriaga (2013) The second part is based on selected papers 14

15 Die (westliche) Welt im 21. Jahrhundert: Wasser kommt aus der Leitung und der Strom aus der Steckdose 15

16 Electricity 101 Electricity is not like any other commodity consumed/produced in real time not storable in large amounts grid bound follows physical laws the backbone of our modern society But: That doesn t mean we can not make a market out of it! 16

17 The Triangle of Energy Economics also holds in Electricity Markets Sustainability EE Security of Supply Economic Efficiency 17

18 The Triangle of Energy Economics Sustainability EE Security of Supply Economic Efficiency 18

19 From Monopoly to Competition Why do we assume electricity markets to be competitive markets now? How do liberalized markets look like and do they function? What role for regulation? And what to do with the network? 19

20 From Regulation to Liberalization: The Good Old Days of Vertical Integration Generation Regulation or State owned Supply 20

21 From Regulation to Liberalization: The Ideal Competitive Market Generation Regulation Transport Wholesale Trader Exchanges OTC Distribution Supply 21

22 But the Devil is in the Details! 22

23 The Triangle of Energy Economics Sustainability EE Security of Supply Economic Efficiency 23

24 And in the darkness bind them Supply security plays an IMPORTANT role in electricity markets E.g., list of bigger blackouts in Europe: : Sweden and Denmark, several Millions without electricity for hours : Italy, caused by problems on import lines (in Switzerland) : Swiss rail electricity black-out : Snow induced break down in Münsterland : Europe is dark due to a Norwegian Pearl Or the more recent blackout in India which left about 600 Mio people (or 75x Switzerland or 9% of the world population) without light Or the 75% of Florida left without power after hurricane Irma 24

25 Techno-Economics Electricity generation and transport are complicated technical processes which are governed by Physics and not Economics Designing Market requires a basic understanding of those underlying technical characteristics 25

26 Investments 26

27 Dunkelflaute? 27